CIRIEC Nº 73 October 2011
Social economy, an international perspective. 25 Years of CIRIEC-España
Good governance in the entities of the social economy
Authors: Mª del Carmen Muñoz Medraño and Juan Briones Peñalver
Keywords: Social economy, good governance, democratic management, cooperation, results, social cohesion, organisational culture, efficient management.
Econlit Keywords: M140, M100, P130, G300.
Entities of the Social Economy are ruled by practices of collective action and democratic participation within the framework of what is known as good governance. This is based on a set of values and principles belonging to the organisations. These practices reach beyond the frontiers of the entity and have an impact on society with the application of policies of local development, social and environmental responsibility, and cooperation. This article seeks to establish a relationship between said good governance practices and business results by means of a literature study, finally formulating a theoretical model of good governance in Social Economy, which will be contrasted empirically in subsequent studies.
Social Economy, an international perspective. Introduction
Authors: José Luis Monzón and Rafael Chaves
Social entrepreneurship: the new narrative for the practice of the social economy
Authors: Nuria Toledano
Keywords: Social entrepreneurship, social economy, narrative, story.
Econlit Keywords: M140, M100, O100, B490, P490, Z130.
In recent years, the notion of social entrepreneurship and its manifest linkage with the economic development and social change has quickly gained prominence in the general discourse of academics and policymakers. A social justification or motive is a key issue in the account for its existence. In this sense, the expression “social entrepreneurship” is being utilized to describe what has been traditionally known as practices of social economy. However, differences in what is understood as “social” can be observed in both areas. The purpose of this article is to examine and compare the ideas that underlie and operate in the current narratives of social entrepreneurship with those implicit in the traditional rhetoric in the context of social economy. The main results show a wider conception of the term “social” within the discourse of social entrepreneurship than in the social economy area.
Social economy and the fourth sector, base and protagonist of social innovation
Authors: Julio Jiménez Escobar and Alfonso Carlos Morales Gutiérrez
Keywords: Fourth sector, third sector, social economy, social innovation, social enterprises, community foundations, peer to peer charities, e-social banking.
Econlit Keywords: L200, L300, P130.
The regeneration of the current economic system demands a new kind of innovation whose patterns and participants differ from the purely technological paradigm. Thus has social innovation arisen from different political and academic spheres as a phenomenon connected in a myriad of ways to the positions postulated in the organizational and business models that form the social economy. The aim of this paper is to explain these connections and potentials by defining a new protagonist in the socioeconomic sphere, the so-called
Foundations and social economy: conceptual approaches and socio-economic relevance
Authors: Marta Rey García and Luis Ignacio Álvarez González
Keywords: Foundations, social economy, non-profit organizations, third sector, socioeconomic impact, INAEF.
Econlit Keywords: D640, D710, L300, L310, L390.
Theoretical debate about the nature of charitable foundations has traditionally become polarized around two distinct conceptual approaches: the non-profit or third sector approach, versus the social economy approach. This research tries to find a common ground between these two approaches, and to highlight the specificities of the foundation as an organizational formula, supporting its current socio-economic relevance with latest quantitative data on the contemporary Spanish foundation sector. In order to achieve this purpose, data from the main empirical studies about the sector during the last decade are compared, with a special focus on those obtained by the recently constituted Institute for Strategic Analysis of Foundations (INAEF).
High-growth cooperatives: financial profile and key factors for competitiveness
Authors: Oriol Amat and Jordi Perramon
Keywords: Worker cooperatives, service cooperatives, high-growth cooperatives, competitiveness factors, financial information, management tools.
Econlit Keywords: M100, M140, M400, P130.
Given the current economic environment, high-growth companies are particularly relevant for their contribution to employment generation and wealth.This paper discusses the results of a survey that was conducted in order to gain a deeper understanding of high-growth cooperatives through analyzing their financial profiles and then identifying key contributing factors to their growth. To do this, we compared this particular sample with other cooperatives and other high-growth mercantile companies.The results show the main drivers related to high-growth companies success. They are the competitive advantages based on the surveyed group, modern management techniques, quality and productivity, innovation and internationalization. Additionally, we have observed some financial strengths and weaknesses. In this sense, they are under capitalized companies with an unbalanced growth.
Financial information and restructuring of spanish savings banks in a context of crisis. Changes in the regulation; content and evolution of FROB
Authors: Salvador Marín Hernández, Ester Gras Gil and Marcos Antón Renart
Keywords: FROB, SIP, banking regulation changes, early warning systems.
Econlit Keywords: P130, Q130.
The worsening of the financial crisis in September 2008, coinciding with the collapse of Lehman Brothers, set off unprecedented action in the European states to support the stability of their markets and financial institutions. Different forums asked for joint and faster implementation. This lead the Spanish authorities to take a series of measures.In the first part of this paper we make a theoretical review of previous studies at international level on early warning systems and about prediction of failure in the banking sector. No doubt it helps to situate and understand better the later Spanish analysis, why it is necessary and its development.We also analyze the evolution of the Spanish financial system between 2008-2011 with the focus on explaining the reform and restructuring of savings banks. Specifically, a study of the accounting and financial standards evolution is made, as well as an examination of the changes in banking regulations that emerged during this period and the role of the Banking Management Restructuring Fund (FROB) and the Institutional Protection Systems (SIP).
Corporate Social Responsibility in the Financial Sector: Are Financial Cooperatives Ready to the Challenge?
Authors: Élias Rizkallah and Inmaculada Buendía Martínez
Keywords: Corporate social responsibility, Canada, financial service cooperatives, voluntary disclosure, content analysis.
Econlit Keywords: G280, G380, M140, P130.
After the crash of financial institutions and the negative effects of the financial crisis, financial service cooperatives (FSCs) emerged as good performer compared to commercial banks. But this condition will not be enough to face the challenges that the new financial panorama will bring on the banking arena. Among them, challenges related to the corporate social responsibility (CSR) sphere will play a special role. In Canada, the financial regulatory framework forces some federal institutions to publish information on social responsibility. Although FSCs are not forced to disclose information they need to provide CSR information to show their role as an institution capable of innovating in sustainable matters. This work analyses public communications of Canadian FSCs to determine the degree of inclusion of CSR information requested from financial institutions. Results show that the CSR Canadian legal framework has a reduced impact on FSCs communication practices, although with significant differences among them.
How viable are spanish credit cooperatives after recent bank capitalization and restructuring regulations?
Authors: Gemma Fajardo García
Keywords: Cooperative credit, legislation, financial crisis, restructuring process, Spain.
Econlit Keywords: K290, G010, G210, G280.
Over the past three years, major reforms have been approved in Spain in order to restructure the banking sector. The purpose of these reforms has been to reinforce the solvency of credit institutions through recapitalization and integration into larger organizations. The credit cooperatives have not presented any solvency problems which would justify these measures being applied to them. The problem that the financial authorities see in their case is their limited size. As a result, the credit cooperatives are immersed in an integration process which is not revolving around the Banco Cooperativo Español (BCE) or the Spanish Association of Rural Savings Banks, as might be expected, but is taking place through mergers between individual institutions and the setting up of various cooperative groups. While the credit cooperatives have not been channelled into bankization (conversion into banks) like the savings banks, ways to become banks have been opened up to them.
Social economy and stakeholder theory, an integrative framework for socialization of the capitalism
Authors: José Luis Retolaza and Leire San-Jose
Keywords: Social Economy, Ontological Stakeholder Theory, Business Ethics, Integrative Social Stakeholder Model, Participation, Governance.
Econlit Keywords: M140, P130, Q130.
In this article we set out to resolve the theoretical foundation of the Social Economy and its permeability with the capitalist economy by integrating the Social Economy paradigm with Stakeholder Theory, thus generating a reciprocal benefit. The alignment of resources and capabilities in accordance with social good, characteristic of the Social Economy, will furnish the ontological perspective of the Stakeholder Theory with a stronger grounding, distancing it from the instrumental perspective. It will also imbue it with a special concern for the social pole, frequently relegated in favour of other stakeholders. Rooting the Social Economy within the Stakeholder Theory makes at least three significant contributions to the former. Firstly, questioning Theory of Property Rights, secondly making it possible to give a systematic foundation to the concept of “families”, and thirdly setting off positive permeability between the Social and the Capitalist Economy. It enables progress in the socialisation of capitalism.
The interrelationship between the demands of Corporate Social Responsibility and co-operative principles and values
Authors: Ricardo J. Server Izquierdo and Jordi Capó Vicedo
Keywords: Corporate Social Responsibility, management, interest groups, cooperatives, stakeholders.
Econlit Keywords: M140, P130, G300.
Corporate Social Responsibility (CSR) and its integrated management in companies is leading to a new company model that willingly expands its concerns by giving equal consideration to economic, social and environmental aspects. Cooperative societies, in paying attention to the principles and values that define them, as shown in this work, are demonstrating that there is a close interrelationship with the basic demands of CSR, which can be a competitive advantage as long as it is driven by a strategy that leads to its integrated management. The singular structure and democratic composition of a cooperative’s management structure can guarantee the total integration of stakeholders in the decision-making process, as they are often not only owners, but also clients, suppliers and employees.